Net loss per common share

3 Months Ended

Mar. 31, 2016

9. Net loss per common share

Basic net loss per share excludes dilution for potentially dilutive securities and is computed by dividing net loss by the weighted average number of common shares outstanding during the period excluding the 9,000,000 shares loaned to Bank of America under a share lending arrangement for the period ended March 31, 2015. In the third quarter of 2015, the 9,000,000 shares loaned to Bank of America were returned and therefore do not impact the first quarter of 2016. Prior to the return of those shares, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share because the share borrower had to return all borrowed shares to the Company (or, in certain circumstances, the cash value thereof).

Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes, are not included in the diluted net loss per share calculation and excluded the 9,000,000 shares of the Company’s common stock loaned under the share lending arrangement.

On February 8, 2016, all unexercised warrants related to the February 2012 public offering expired. The only remaining warrants outstanding relate to those issued to the Company’s placement agent in exchange for services related to the Company’s offering on November 9, 2015 for selected investment funds in Israel.

Potentially dilutive securities outstanding are summarized as follows (in shares):


	March 31,
	2016		2015
Exercise of common stock options		24,102,471		21,615,264
Vesting of restricted stock units		3,946,007		2,647,020
Exercise of common stock warrants		159,303		6,200,721
Conversion of senior convertible notes into common stock		4,072,809		14,708,590

		32,280,590		45,171,595